However, the company reported an increase in purchased goods and services emissions as well as upstream transportation and distribution emissions from 2019 to 2021. LVMH has not reported effective engagement with suppliers to put in place energy efficiency measures or help them transition to renewable energy, and provides very limited transparency into its actions. To show leadership among luxury brands, LVMH should set a target of 100% renewable energy for its supply chain by 2030 and actively engage in renewable energy advocacy. These two approaches are essential steps for decarbonising its manufacturing.
Total Score
D-
Emissions
0.39%
About the Scorecards
The fashion industry is responsible for 2- 8% of global emissions but are fashion brands doing enough to tackle their growing climate impact? The updated 2023 Fossil Free Fashion Scorecard analyses 43 fashion companies on their climate action.
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GHG emissions:
LVMH has set an emissions reduction target for its own operations of 50% by 2026 from a 2019 baseline, which is in line with keeping warming below 1.5°C.
The company has also set an emissions reduction target for its supply chain of 55% per unit of added value. It is not as strong as an absolute reduction target and not in line with the 55% reduction required.
Renewable energy:
LVMH has set a renewable energy target in its own operations of 100% by 2026, but the energy will be a mix of additional to the grid and renewable energy credits.
LVMH has yet to set a target of 100% renewable energy for its supply chain by 2030, which is an essential step for decarbonising its manufacturing.
Coal phase out:
As a signatory of the renewed UN Fashion Charter, LVMH has committed to phasing out coal-fired boilers from its supply chain by 2030 to reduce air pollution and cut emissions.
GHG emissions:
LVMH publicly reports GHG emissions in its own operations, and in its supply chain. The company does provide a full breakdown of its Scope 3 emissions.
Energy use:
LVMH does publicly report its energy use for its own operations, including a breakdown of its renewable energy use.
For its supply chain, LVMH does not publicly report its energy use, a breakdown of its suppliers’ renewable energy use or how that energy is sourced.
Suppliers:
LVMH does not provide a supplier list, but some individual brands (e.g. Fendi) provide a list.
LVMH does not appear to provide its suppliers with training and resources to help them make energy efficiency improvements. LVMH does not report providing its major suppliers with financial incentives for energy efficiency measures, and does not require them to make energy savings as a condition of contract.
LVMH does not report requiring suppliers to reduce thermal coal demand in their manufacturing processes.
LVMH does report providing its suppliers with some environmental training, but it is not clear how much it relates to renewable energy. The company does not report providing financial support or incentives to make the energy transition and does not require suppliers to use renewable energy as a condition of contract.
LVMH does not require its suppliers to set GHG emissions reduction targets or set science-based emissions reduction targets, and does not require suppliers to provide facility level data via the Higg Index and annually report GHG emissions.
LVMH has not made any commitments to phase out fossil fuel based materials.
LVMH has set itself a target of achieving “zero net deforestation” in its supply chains by 2026 and “zero gross deforestation” by 2030, including a ban on sourcing animal skins (leather) from the Amazon basin.
However, LVMH was found to be at high risk of sourcing leather from deforestation in the Amazon Biome in the Nowhere to Hide report in 2021.
Low-carbon materials:
LVMH has not committed to increasing closed-loop apparel-to-apparel recycling for synthetics and plant-based materials. LVMH has committed to reduce the impact of its raw materials sourcing by switching to organic cotton or cotton sourced from regenerative agriculture by 2030.
Increasing circularity:
As of 2021 LVMH does offer some options for repair and refill to reduce post-consumer waste. It also runs a company-wide program to resell materials between brands, and is working towards a process to recycle unsold textile waste. However, it is not discernible that LVMH is acting to increase circularity and address overproduction by designing to improve the recyclability of its clothes.
LVMH does not publicly report its material mix or its volume of deadstock, but it does provide information on how it manages or disposes of its deadstock to reduce waste.
LVMH does report its shipping emissions annually, does include shipping emissions in its GHG reduction targets, and does provide a breakdown of its upstream and downstream transportation methods. LVMH has also set a target to reduce downstream (from brand to customer) shipping emissions by 10%.
LVMH does report having a policy to avoid aviation and commit to slower shipping methods such as maritime, rail and land. The company does report piloting some small-scale near-term methods to ship its cargo via cleaner methods, including Moët Hennessy’ cooperation with the shipping company Neoline to launch a transatlantic wind-powered cargo ship, but does not provide details on its company-wide policy. LVMH reported a 12.9% increase in its upstream transportation and distribution emissions between 2019 and 2021.
LVMH has not committed to transitioning to zero emissions vessels (ZEV) by 2030. The company has not used its voice publicly to advocate for Zero Emission Shipping.
LVMH has not committed to transitioning its last mile delivery to zero emission vehicles, but Sephora, Guerlain and TOSHI use zero emission vehicles for their last mile delivery.
LVMH did not engage in any discernible advocacy to promote renewable energy or emissions cuts within the Scorecard period.